PROBLEM SOLVING 1) What is the coupon of a bond selling at par having in mind that interest rates are fixed at 5 percent? (10 points) 2) What is the maximum price of a fixed-coupon bond paying every six months with a coupon rate of 9 percent, interest rate of 5 percent, and a maturity of five years. (15 points) 3) What is the coupon rate of a consol bought at 900 USD knowing that interest rate is 10 percent? (10 points) COMMON STOCKS 1) What would be your maximum investment on a corporate stock with the following information (15 points): - Dividend just paid is 5 USD - Dividend paid after one year is 15 USD during 3 years - Dividend paid starting year 4 is 25 USD - Interest rate is 10 percent 2) How much would you expect as dividend in height years from now if you have just been paid 5 USD as dividend and you know that dividends are expected to grow at a constant rate of 11 percent, and interest rate is 15 percent? (10 points) 3) How much would you pay on a stock knowing that the first dividend will be 4 USD expected to grow at 5 percent and the next dividend will be paid four years from now expected to grow at 6 percent per year forever. Interest rate is 12 percent. (15 points)